Hyperliquid Ecological Mining Guide

Original Title: The Ultimate Guide to Farm the Hyperliquid Ecosystem

Original Author: Castle Labs

Original Compiler: zhouzhou, BlockBeats

Editor's Note: This article introduces several DeFi protocols within the HyperEVM ecosystem, covering protocols such as Felix, Mizu Labs, Drip.Trade, HyperSwap, etc., which provide opportunities for staking, liquidity mining, and airdrop rewards. By participating in these protocols, users can earn multiple rewards and ecosystem points, and potentially receive future token allocations. The HyperEVM ecosystem shows great potential, with the value of early activities being underestimated, providing a second chance for users who missed the first wave of airdrops.

The following is the original content (reorganized for readability):

Unless you have completely detached from the crypto space, you must have noticed: Hyperliquid is everywhere. It is one of the few projects executing TGE strategies precisely, not only creating substantial wealth but also maintaining growth momentum across the ecosystem.

While most traders focus on perpetual contract layers, which have indeed found product-market fit and built one of the most active "cult communities" in the crypto space, the expanding application layer around HyperEVM is often overlooked. The real opportunity lies here.

Castle has covered the core content of Hyperliquid in this analysis:

This guide will delve into the mining strategies forming around HyperEVM, including their evolution, who is most likely to receive rewards, and how to position oneself in the early stages.

What has happened, and what comes next?

@hyperliquidx's first airdrop in November 2024 became a historic event, distributing 31% of its total token supply to over 90,000 users. The token issuance price was $3.20, peaking at $34. This airdrop was valued at over $10.5 billion at its peak, making it one of the largest wealth transfers in crypto history.

The current opportunity is immense and still in its early stages. HyperEVM is live, core protocols are operational, and various point systems are incentivizing user behavior.

The liquidity across the entire ecosystem remains thin, which is often the best time to capture maximum returns. So far, Hyperliquid has allocated 31% of its total supply, with another 39% yet to be distributed. At current valuations, this means nearly $4 billion worth of $HYPE could be distributed to future participants.

And this is not just about $HYPE itself. Native protocols like @KittenswapHype, @HyperLendx, and @HypurrFi are also conducting their own point activities, which can yield rewards now and potentially stack with future ecosystem incentives.

The market has not fully reacted yet. Overall participation remains low, attention is scattered, and few can position themselves accurately. If this cycle unfolds according to the logic of the previous cycle, the earliest and most active participants will reap the largest rewards.

So, who is most likely to benefit next?

From the history and current state of Hyperliquid, there are several key groups worth paying attention to:

• Perpetual contract traders who maintain stable trading volumes and remain active
• Users holding Hyperliquid native NFTs
• "Protocol farmers" participating in HyperEVM protocols (lending, providing liquidity, borrowing, etc.)

Considering these, here are the 10 mining opportunities currently worth focusing on in the Hyperliquid ecosystem.

1. KittenSwap -- ve(3,3) Model DEX for HyperEVM - @kittenswaphype

KittenSwap is the main DeX on HyperEVM, adopting a ve(3,3) model similar to Velodrome and Solidly. It supports trading pairs of stablecoins and volatile tokens, rewarding long-term users through fee dividends, point programs, and governance mechanisms.

As the DEX with the highest trading volume and TVL in the ecosystem, KittenSwap is the core hub of HyperEVM liquidity. Many new protocols choose to launch tokens or create stablecoin trading pairs here.

KittenSwap recently launched concentrated liquidity pools, allowing for custom price ranges, and temporarily increased point multiplier rewards. Some trading pairs currently offer up to 20 times point rewards (such as LHYPE/HYPE and USDXL/HYPE), while standard pools have seen a decrease in multipliers. This indicates that the protocol will be more inclined to support concentrated liquidity in the future.

Mining Strategy

Add liquidity to high-yield pools ------ Focus on pools with high multipliers, such as PURR/HYPE, LHYPE/HYPE, and USDXL. Avoid pools with excessively high total locked amounts, where rewards may be diluted.

Stake LP tokens to earn points ------ After adding liquidity, stake LP tokens on KittenSwap to earn points. Points are updated weekly and determine your allocation share in future token distributions.

Use MechaCats NFTs to boost yields ------ Holding MechaCats NFTs provides a points bonus:

• 1--9 NFTs = 1.25x
• 100--199 = 1.4x
• 500 or more = 1.5x

MechaCats holders will also ensure a 3% share of the veKITTEN supply when the token launches.

2. HypurrFi -- Leverage Lending and Stablecoin Yields - @hypurrfi

@HypurrFi is a leverage lending platform on HyperEVM and the issuer of the native over-collateralized stablecoin USDXL. Users can borrow USDXL by collateralizing $HYPE or stHYPE while still earning interest on the collateralized assets.

The protocol invests its revenue into tokenized U.S. Treasury reserves to enhance the long-term stability and asset backing of USDXL.

Mining Strategy

• Deposit $HYPE → Borrow USDXL

The simplest mining method: maintain exposure to HYPE while freeing up USDXL for other yield opportunities.

• Add borrowed USDXL to liquidity pools

Can be paired with HYPE, LHYPE, or feUSD on KittenSwap or HyperSwap to earn high multiplier point rewards.

• Hold or lend USDXL

Simply holding or lending USDXL may also yield future rewards from the protocol or ecosystem.

According to HypurrFi, early users typically receive optimal rewards, even if points are not displayed at the time. The platform tracks user behavior in the background, including borrowing, adding liquidity, or transferring USDXL, all of which may participate in multiple incentive activities.

The point system is now live and updated regularly, making it one of the simplest mining strategies on HyperEVM.

3. HyperLend -- Lending Infrastructure, Point System Now Live - @hyperlendx

@HyperLendx is the main lending protocol on HyperEVM, supporting core assets such as HYPE, stHYPE, LHYPE, and USDXL. It serves not only as an independent money market but also provides liquidity foundations for other protocols, including @Harmonixfi, @Mizulabs, and @Felixprotocol, throughout the ecosystem.

The public point program will launch on April 7, 2025, featuring weekly rewards and an XP-based compounding system.

Points are related to lending, daily active behavior, and social referrals, automatically displayed on the wallet dashboard without manual claiming.

Mining Strategy

• Deposit assets early

Immediately deposit assets like HYPE, LHYPE, or USDXL when a new cycle begins.

The protocol has a TVL cap; the later you enter, the more points decrease.

• Borrow to increase point weight

Borrowing actions can enhance reward weight, even small positions can help.

You can use HYPE or LHYPE as collateral to borrow stablecoins while retaining spot exposure.

• Activate XP daily loop

When holding ≥100 points and depositing assets ≥$50, you can claim XP daily.

XP will compound over a week, eventually converting into additional points.

• Activate all available bonuses

Testnet participants will receive permanent point multiplier bonuses.

Users holding @HypioHL NFTs will earn additional points (NFTs with HyperLend features will have higher multipliers).

The social referral system opens 13 layers of invitation relationships, earning extra points based on the performance of the inviter.

• Stack yields from other protocols

You can add USDXL or LHYPE borrowed from HyperLend to @KittenSwaphype or @HypurrFi for multi-protocol point stacking. You can also deposit into the newly launched uBTC, earning both HyperLend points and rewards from HyperUnit.

HyperLend is a "deploy and observe" strategy, requiring low-frequency operations once set up. The main task is to master the entry timing, claim XP daily, and occasionally adjust positions based on reward changes.

4. Felix Protocol -- Stablecoin Yields + Liquidation Mining - @felixprotocol

@Felixprotocol is the first native stablecoin protocol on HyperEVM, allowing users to mint feUSD by collateralizing HYPE. It offers two main yield paths: staking feUSD in stable pools for liquidation rewards or using feUSD in various liquidity pools to earn additional points.

As a foundational module of DeFi, the Felix protocol helps users achieve leverage, assume risks, and transfer funds between lending protocols and DEXs. Its point program will officially launch on April 13, 2025, at 12:00 PM UTC.

Mining Strategy

• Collateralize HYPE → Mint feUSD

feUSD is an over-collateralized stablecoin designed for use across the ecosystem.

• Stake feUSD in stable pools

These pools support the liquidation mechanism.

When collateral positions are liquidated, participants can acquire HYPE at a discount and share in some of the protocol's revenue.

• Add liquidity on KittenSwap or HyperSwap

For example, trading pairs like feUSD/USDXL and feUSD/HYPE typically enjoy point bonuses from the cooperative ecosystem.

• Pay attention to multi-protocol integration

Felix has integrated with HyperLend and can be used in Mizu's automated yield vault.

Using feUSD across multiple protocols may unlock stacking incentives.

Felix is a clean strategy for making idle HYPE work, allowing users to enjoy multiple yield paths from protocol rewards, liquidation bonuses, and ecosystem point distributions.

5. Mizu Labs -- Automated HyperEVM Mining Tool

@MizuLabs is a yield aggregator in the HyperEVM ecosystem, focusing on automated mining. It offers hypeETH and hypeBTC vaults (these are liquidity-wrapped tokens after bridging ETH and BTC) and deploys these assets into high-yield protocols like HyperLend, HypurrFi, Felix, Harmonix, etc.

This protocol is ideal for users who wish to participate in HyperEVM mining without frequently rotating funds or manually tracking points. Mizu helps users automatically optimize yields, accumulate points, and consolidate rewards through unified vaults.

Mining Strategy

• Deposit ETH or BTC → Obtain hypeETH or hypeBTC

Mizu provides a guided bridging and wrapping process; you must first convert native assets into hypeETH/hypeBTC to enter the vault.

• Deposit hypeETH or hypeBTC into Mizu vault

After depositing, Mizu will automatically deploy the assets across multiple protocols to maximize yields and point acquisition.

• Earn stacking rewards

Mizu vaults can simultaneously enjoy rewards from up to eight protocols, including Hyperbeat, Harmonix, HypurrFi, Timeswap, and HyperLend. Royco Markets has also reserved a 1-2% distribution quota of various tokens for Mizu users.

Mizu is a passive mining strategy suitable for ETH/BTC holders, easily accessing HyperEVM with multi-protocol stacking yields and requiring minimal operations.

6. Drip.Trade -- Native NFT Marketplace + Future Airdrop Potential

@drip__trade is the main NFT marketplace on HyperEVM, hosting local series related to point bonuses, airdrops, and whitelists, such as @HypioHL, MechaCats, and @HypersonHL. Most NFT projects on HyperEVM will launch here or use Drip for secondary liquidity trading.

Although an official token has not yet been launched, the site already has a "Rewards" tab, and several series have hinted that active users and holders will receive future airdrops.

Mining Strategy

• Purchase and hold key series

Start with Hypios (for HyperLend bonuses), MechaCats (for KittenSwap multipliers and 3% of the $KITTEN supply), and Hypers (Drip's flagship project). These series have historically secured whitelist positions and token allocations from cooperative protocols.

• Stay active

Trade, list, and delist regularly, as market activity may affect future airdrop eligibility.

7. Hyperbeat - @0xhyperbeat

@0xHyperBeat, as a validator and ecosystem fund, focuses on staking, yields, and long-term integration with Hyperliquid. Through vault deployment, it provides users with exposure to multiple projects and may lead to future token allocations through Hearts (points) rewards.

As a way to engage without frequently rotating funds, HyperBeat simplifies the mining process for entering early protocols on HyperEVM.

Mining Strategy

• Stake HYPE with HyperBeat validators

Accumulate Hearts over time, with rewards based on weekly snapshots.

• Deposit into vaults via Royco Markets

Choose one of the following options:

HyperETH vault for ETH → Exposure to 15+ cooperative protocol tokens

HyperBTC vault for BTC

HyperUSD vault for stablecoins (with over $11 million in TVL)

• Earn stacking rewards

A single deposit can earn Hearts and points from cooperative protocols like HyperLend, HypurrFi, Harmonix, Timeswap, Silhouette, etc.

• No need for active mining

Funds are automatically routed, and rewards are tracked automatically as new protocols join.

Hyperbeat is a passive mining method that combines validator staking and multi-protocol vaults, allowing users to mine on HyperEVM with a one-time setup.

8. HyperSwap -- Low Slippage DEX, Deep Ecosystem Integration @hyperswapx

@HyperSwapX, as a low-slippage AMM on HyperEVM, positions itself as a lightweight and streamlined alternative to KittenSwap, optimizing for fast execution, low TVL mining, and ecosystem partner activities.

The protocol's active point program distributes 2.5 million points over 5 weeks (500,000 per week), with points allocated through usage, LP provision, and integration with over 20 cooperative protocols. Weekly snapshot time is every Sunday at 10 PM PST.

Mining Strategy

• Provide liquidity and stake LP tokens

Provide liquidity on HyperSwap and directly stake LP tokens. Points are allocated based on the pool's size, duration, and trading volume; the longer the staking time, the larger the share earned.

• Trade regularly

Trade weekly on HyperSwap, especially in cooperative token pools, to earn activity-based points.

• Mine ecosystem pools

Certain trading pairs offer additional rewards: USDXL, feUSD, KEI, LHYPE, stHYPE, uBTC/uETH. Providing liquidity to these pools will earn points from both HyperSwap and cooperative protocols.

• Earn stacking bonuses through holdings

Users holding Hypio NFTs, Buddy tokens, CatCabal, PiP, etc., can earn points weekly if active on HyperSwap.

• Referral system

Invite new users and earn 10% of the points they generate through their trades and LP provisions.

HyperSwap is ideal for small LPs and cross-protocol farmers. With its usage-based reward mechanism, it maintains simplicity and scalability without NFT or veToken mechanisms.

9. Looped HYPE - @looped_hype

@Looped_HYPE wraps $HYPE into LHYPE, a rebasing token designed for passive leverage without liquidation or fee tracking. It offers enhanced staking yields and integrates with top protocols on HyperEVM. Looped HYPE has also launched a structured early user program, allocating 7% of its total token supply to users who mint and hold LHYPE, supporting usage in DeFi positions.

Mining Strategy

Mint LHYPE on the official website, avoiding swaps. Only direct minters or those using through supported integrations are eligible for the early user program.

Participate in the second phase (now live)

Quota: 3% of total token supply

Limit: 2M HYPE

Hold LHYPE for ≥8 weeks

Hold LHYPE in the following locations: native wallet, AMM pools (KittenSwap, HyperSwap, Laminar), or lending protocols (Felix, Timeswap).

Provide LHYPE liquidity in the ecosystem

@KittenswapHype concentrated pools offer 20x multiplier rewards. HyperSwap includes LHYPE in its point program. Holding LHYPE also counts towards activities in Mizu, Harmonix, and HypurrFi.

No active management required

Once deployed in DeFi, LHYPE will continue rebasing and automatically mine across layers.

Staking $HYPE

Staking $HYPE on Hyperliquid is a low-effort way to earn yields and potentially qualify for future Hyperliquid and its cooperative protocols' airdrops. Validators like HypurrCollective x Nansen have already secured multiple airdrops for their stakers, including:

SENT(SENTIIENTAI)-2120K allocated

TIME(TIMESWAP)-0.5 100K

These airdrops are typically distributed in tiers based on the amount staked.

Staking Strategy

• Visit the Hyperliquid staking page
• Transfer $HYPE from the spot account to the staking account
• Delegate to a validator (e.g., HypurrCollective x Nansen)
• Earn staking rewards and unlock airdrop eligibility

If you do not participate in active mining, this is the simplest way to stay involved and earn rewards through holding.

Conclusion and Thoughts

This article covers the existing and relevant core protocols within the Hyperliquid ecosystem, but it is far from exhaustive of everything happening. Currently, dozens of new protocols are being built on HyperEVM, many of which show potential, while some are still seeking positioning. Due to space constraints, we focused on those with active rewards and meaningful progress. However, this momentum is rapidly spreading.

The most profitable airdrops often do not announce themselves loudly. Hyperliquid has already demonstrated its commitment to early users through one of the largest token distributions.

Now, the entire ecosystem surrounding HyperEVM appears poised to follow a similar trajectory.

There is ample reason to assert that the early activities currently in the HyperEVM ecosystem are significantly undervalued relative to future potential. The protocols mentioned in this article represent the core infrastructure that could become an important DeFi environment, and early participants are likely to receive substantial token allocations.

For those who missed the first Hyperliquid airdrop, the emerging ecosystem provides a rare second chance, and this time, the direction regarding which activities are most important has become clearer.